Sorry, investors, but there is no sanity clause.
Two years ago, after the shock of Donald Trump’s election, financial markets briefly freaked out, then quickly recovered. In effect, they decided that while Trump was manifestly unqualified for the job, temperamentally and intellectually, it wouldn’t matter. He might talk the populist talk, but he’d walk the plutocratic walk. He might be erratic and uninformed, but wiser heads would keep him from doing anything too stupid.
In other words, investors convinced themselves that they had a deal: Trump might sound off, but he wouldn’t really get to make policy. And, hey, taxes on corporations and the wealthy would go down.
But now, just in time for Christmas, people are realizing that there was no such deal — or at any rate, that there wasn’t a sanity clause. (Sorry, couldn’t help myself.) Put an unstable, ignorant, belligerent man in the Oval Office, and he will eventually do crazy things.
To be clear, voters have been aware for some time that government by a bad man is bad government. That’s why Democrats won a historically spectacular majority of the popular vote in the midterms. Even the wealthy, who have been the prime beneficiaries of Trump policies, are unhappy: A CNBC survey finds that millionaires, even Republican millionaires, have turned sharply against the tweeter in chief.
.. The reality that presidential unfitness matters for investors seems to have started setting in only about three weeks (and around 4,000 points on the Dow) ago.
- First came the realization that Trump’s much-hyped deal with China existed only in his imagination. Then came
- his televised meltdown in a meeting with Nancy Pelosi and Chuck Schumer,
- his abrupt pullout from Syria,
- his firing of Jim Mattis and
- his shutdown of the government because Congress won’t cater to his edifice complex and build a pointless wall. And now there’s
- buzz that he wants to fire Jerome Powell, the chairman of the Federal Reserve.
Oh, and along the way we learned that Trump has been engaging in raw obstruction of justice, pressuring his acting attorney general (who is himself a piece of work) over the Mueller investigation as the tally of convictions, confessions and forced resignations mounts.
.. And even trade war might not do that much harm, as long as it’s focused mainly on China, which is only one piece of U.S. trade. The really big economic risk was that Trump might break up Nafta, the North American trade agreement: U.S. manufacturing is so deeply integrated with production in Canada and Mexico that this would have been highly disruptive. But he settled for changing the agreement’s name while leaving its structure basically intact, and the remaining risks don’t seem that large.
.. Now imagine how this administration team might cope with a real economic setback, whatever its source. Would Trump look for solutions or refuse to accept responsibility and focus mainly on blaming other people? Would his Treasury secretary and chief economic advisers coolly analyze the problem and formulate a course of action, or would they respond with a combination of sycophancy to the boss and denials that anything was wrong? What do you think?
Syndicated columnist Mark Shields and Washington Post columnist Michael Gerson join Judy Woodruff to analyze the week’s political news, including the resignation of Defense Secretary Jim Mattis and the congressional scramble to fund the government and avoid a partial shutdown.
Jim Mattis’s resignation resulted in panic and is a sign that we are reaching the beginning of the end.
Trump had an agreement for temporary funding but felt pressured by Ann Coulter and Rush Limbaugh because the threat of the Mueller Report forces Trump to solidify his support on the right.
Similarly, I believe we must be resolute and unambiguous in our approach to those countries whose strategic interests are increasingly in tension with ours. It is clear that China and Russia, for example, want to shape a world consistent with their authoritarian model — gaining veto authority over our nation’s economic, diplomatic, and security decisions — to promote their own interests at the expense of their neighbors, America and our allies. That is shy we must use all the tools of American power to provide for the common defense.
My views of treating allies with respect and also being clear-eyed about both malign actors and strategic competitors are strongly held and informed by over four decades of immersion in these issues. We must do everything possible to advance an international order that is most conducive to our security, prosperity and values, and we are strengthened in this effort by the solidatrity of our alliances.
Because you have the right to have a Secretary of Defense whose views are better aligned with yours on these and other subjects, I believe it is right for me to step down from my position.
In the hours before and after journalist Jamal Khashoggi was killed inside the Saudi Consulate in Istanbul, Saudi Crown Prince Mohammed bin Salman and a senior aide who allegedly oversaw the assassination exchanged multiple messages, according to people familiar with the matter.
.. The CIA included the existence of the messages in its classified assessment that Mohammed is likely to have ordered Khashoggi’s death, a view that agency officials have shared with members of Congress and the White House.
.. Mohammed exchanged the messages on Oct. 2 with Saud al-Qahtani, one of his closest aides and a fierce public supporter who has kept a blacklist of those he deems disloyal to the kingdom.
.. Citing portions of the CIA’s written assessment, the Wall Street Journal first reported on Saturday that Mohammed had sent at least 11 messages to Qahtani before and after the killing.
.. The CIA has rated its assessment that Mohammed was involved in the killing at “medium-to-high confidence,” and privately, officials have said it is inconceivable that the prince, who exercises total authority over the government, could not have known about such an audacious operation. The Post had previously described officials as saying that the CIA had high confidence in its assessment... “They are a relationship that has mattered for 70 years across Republican and Democrat administrations alike,” said Pompeo, who previously served as the CIA director. “It remains an important relationship, and we’re aiming to keep that relationship with the Kingdom of Saudi Arabia.”.. Secretary of Defense Jim Mattis said the question of holding the killers responsible and the strategic importance of the U.S.-Saudi relationship were separate issues.
“Accountability for the murder of Khashoggi stands alone. It is distinct from any other factor going on,” Mattis said in remarks at the Reagan National Defense Forum in California.
.. Qahtani has emerged as a key player in the killing and a compelling link to the prince. He shows up in another portion of the CIA’s assessment: An alleged member of the Saudi hit team that U.S. and Turkish officials said Qahtani oversaw, Maher Mutreb, called Qahtani from inside the consulate to inform him Khashoggi was dead, The Post has previously reported. Mutreb, a security official who was often at the crown prince’s side, is seen on security camera footage entering and leaving the consulate on the day Khashoggi was killed.
.. The U.S. intelligence community also has intercepts of communications before Khashoggi was killed that show Mohammed had ordered an operation to lure him back to Saudi Arabia. Friends of Khashoggi’s have said that Qahtani called the journalist and raised the potential of his working for the crown prince if he would end his self-imposed exile in Virginia and return to his native country.
.. Communications that the United States intercepted in July show that Mohammed had asked senior Saudi intelligence officials about the status of a plan to lure Khashoggi back to Saudi Arabia, according to one intelligence official.
.. President Trump, who also has been briefed on the CIA’s findings, has been equivocal in assigning blame to the crown prince, who works closely with the president’s son-in-law and senior adviser Jared Kushner on Middle East issues.
“Maybe he did or maybe he didn’t!” Trump said in a statement last month, adding that the true culprits might never be known. The president has said that the strategic relationship with Saudi Arabia and the benefit to the U.S. economy from Saudi arms purchases are too important to rupture over the killing of Khashoggi, which he has condemned.
.. But the latest revelation of intelligence connecting Mohammed and his aide Qahtani to the killing may increase pressure on the administration to take more punitive steps.
.. Last week, in a rebuke of Saudi Arabia and the administration’s handling of the Khashoggi case, a majority of the Senate voted to advance a measure to end U.S. military support to Saudi Arabia for its war in Yemen against Iranian-backed militants.